Ex-Morgan Stanley director faces prison

Garth Peterson, a former managing director in Morgan Stanley’s real estate business in China, faces up to five years in prison after he subverted the firm’s controls against foreign bribery.

He also faces a maximum criminal fine of $250,000 for his actions.

The U.S. Justice Department says Peterson, pleaded guilty Wednesday in federal court in Brooklyn, New York for secretly acquiring millions of dollars’ worth of real estate investments for himself and a Chinese official.

Peterson also settled related civil charges filed by the SEC in April, paying $250,000 in restitution. He has been permanently barred and will relinquish his interest in the Shanghai real estate he acquired, which is valued at approximately $3.4 million.

Staff

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